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Feb 05
2009
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Benefits Agencies: Why They’re HotPosted by Clear Rock in Insurance MA |
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The numbers from 2008 clearly bear out the trend: benefits agencies are moving at a faster rate than traditional P&C shops.
While the reasons are manifold, one key factor is the availability of solid agencies for traditional P&C buyers. After a several-years long buying spree, many of the best shops have been absorbed by banks and public brokers.
When combined with the soft P&C market, we see a gravitation towards the benefits side. The need to diversify product lines rounds out the rationale- making solid benefits agencies the go-to choice for many of the top buyers in the market today.
Interestingly, in addition to benefits shops, we continue to see more and more buyer inquiries for non-standard lines shops and other tight niche agencies. Reading between the lines, the theme is diversify, diversify, diversify. Strong market share in niche markets and solid margins on non-standard business remain very attractive in tough times.
While the reasons are manifold, one key factor is the availability of solid agencies for traditional P&C buyers. After a several-years long buying spree, many of the best shops have been absorbed by banks and public brokers.
When combined with the soft P&C market, we see a gravitation towards the benefits side. The need to diversify product lines rounds out the rationale- making solid benefits agencies the go-to choice for many of the top buyers in the market today.
Interestingly, in addition to benefits shops, we continue to see more and more buyer inquiries for non-standard lines shops and other tight niche agencies. Reading between the lines, the theme is diversify, diversify, diversify. Strong market share in niche markets and solid margins on non-standard business remain very attractive in tough times.